Reclaiming Tax on Savings
I know this question is more suited to a savings forum but seeing as people on TGT are more likely to understand the concept of matched betting I thought I'd ask here (no need to explain how I've been able to live off some income that isn't taxable!).
I was made redundant last February and, since then, I have lived off my savings and the money I have made from matched betting. At the moment, it would appear that there's no new job on the horizon so it's very likely I will still be out of work come the new tax year.
I've just received a statement for one of my savings a/cs and it's prompted me about the tax deducted.
My question is this.
As I have had no taxable income (apart from my savings interest and 4 months of JSA) since 1st April 2010, does anybody know if I can claim back the tax deducted from the interest at source? The savings interest is less than my personal allowance. Or is it the case that I can only claim back tax that has been deducted after I advise the bank/building society that I am (for the moment) a non tax payer?
The amounts involved are not huge - less that £500.
Or is it best to let sleeping dogs lie?!
not sure about the claim back, cant see why not
at endof year if you fill in a tax return i imagine theres a way to get it back much like when getting a job in summer holidays thru university, say you earnt500/week for 8 weeks
youd possibly be taxed on an emergency tax code which would equate the tax if it were an annual salary of 26k
wheras you actual earnings would be 4k for the year assuming no other jobs, so a rebate would be due
i opened a savings account recently
due to my main income atm (this) not being taxable to the best of my knowledge i ticked the box to say tax free saving and had to fill in NI number
with it being a difference of about £6 per grand saved per year at present , i was half tempted to just keep quiet, just in case it lead to someone investigating where im getting money from
but i figured it was worth it. not heard anything yet
Ok thanks. I'll see about sorting it out come April.
Hi Westv I work in a bank, you can def claim back taxed savings interest if you are not liable for tax.
Rangers then, Rangers now, Rangers Forever.
Interesing thread. Looks like s0095063 has provided you with your answer. I'm no tax expert but the first thing that would have sprung to mind for me is that since your taxable income is less than your personal tax allowance, then you should (as s0095063 points out) be able to claim back the tax on your savings.
HMRC talk about the issue here; HM Revenue & Customs: Getting tax-free interest on savings or claiming tax back
Looks like it gets deducted automatically by banks......... I wonder how many have never thought about this and I wonder what happens to all that money flying around???? !!!
I would claim it back if you feel it is worth your time to do so.
Or is it best to let sleeping dogs lie?!
Betting winnings are of course tax free in the UK since 2001 when the chancellor abolished betting tax; [ARCHIVED CONTENT] Budget 2001: Press Notice: General Betting Duty Abolished
Most agree that people who gain their income soley from gambling c an do so tax free and there is info to support that here; Trade: exceptions & alternatives: betting and gambling: the professional gambler
However there is an argument that if the HMRC could establish a "sole or main income ruling" under the Income and Corporation taxes act then profits could actually represent trading income, and therefore be taxable. However this argument is purely academic and has never been pursued or enforced. I have heard of specialist accountancy firms (not your average Yellow Pages entry) advising clients that it would be a good idea to have an additional source of income such as a rental property, meaning that "technically" your betting would not amount to sole source of income. However I suspect that this is more due to the "lets cover our arses" syndrome. An accountant who charges £100 an hour for instance can't exactly say "nah bollocks to it, nobody has ever been done so you will be fine and that will be £100 thank you very much".....................
Going off on a slight tangent - - westv, have you exhausted your tax-free savings possibilities, i.e. with a cash ISA? Not that they are big interest earners these days, but with a bit of shopping around, you should be able to find a half decent rate. The advantage is that your savings will earn tax-free interest forever (unless the government make some mad U-turn), even as and if you become a taxpayer again. The potential disadvantage is that there's a max per annum you can pay in, and once you take any money out, you lost the tax protection on that amount.
The MSE Savings Forum is quite good for information on this. I wouldn't worry explaining to them why you are a non-tax payer - it's really none of their business, and it's not for some forumites to assess whether you are liable to tax - -it's the taxman's job ;-)